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IKEA launched their new Visa credit card today, issued by Comenity Bank. On the surface, it looks good. But the devil is in the details.

The big pitch is that you’ll get 5% back on IKEA purchases, as well as 5% back on Traemand and Taskrabbit services. You’ll also get 3% back on dining, grocery and utility purchases. And you’ll get 1% back on everything else. There’s also a $25 reward certificate bonus for signing up and another $25 after making $500 in purchases outside of IKEA within the first 90 days of opening the card.

Perks wise, everything you get as an IKEA Family reward card member comes with this card as well. The one exception, you’ll also get free standard shipping & delivery on in-store purchases thru 8/31.

But there’s a huge catch: the rewards come in the form of an IKEA voucher. Every time you accumulate $15 in rewards, IKEA will issue you a voucher good for 45 days.

But I would wager that most people don’t shop at IKEA every 45 days for furniture. Meaning you’ll easily lose out on the value of the reward. That is, unless you’re an IKEA fanatic and visit every weekend. In which case, I hope these vouchers can be used towards a Swedish meatball meal in the IKEA restaurant.

The interest rate is set at a standard 21.99% for everyone, which is abysmally high. You’re better off getting an IKEA Projekt card for really big IKEA purchases (over $5,000). Or using any other credit card for smaller purchases.

Bottom Line: Don’t apply for this credit card. There are better rewards cards out there. Unless you’re an IKEA fanatic.

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